The Truth About 'America's $6 Trillion Debt Maturity Leading to Bankruptcy' That You Need to Know!
Recently, the claim that 'America's $6 trillion debt maturity will lead to bankruptcy' has been spreading wildly online, but these figures are seriously misleading.
Let me clarify the facts for you:
The Real Situation of U.S. Debt Maturity
Approximately $6 trillion in U.S. debt will mature in the second quarter, which is a normal level.
For the entire year of 2025, approximately $10.8 trillion in U.S. debt will mature, slightly higher than last year but generally stable.
The error in the data circulating online is that it does not account for already repaid debts, exaggerating the actual risk.
Where are the real risk points?
(1) Corporate Debt Crisis:
During the pandemic, companies borrowed substantial long-term debt at ultra-low interest rates.
Now, the scale of maturing debt is four times that of normal times.
This could trigger a sell-off wave and liquidity crisis similar to 2008.
(2) Debt Ceiling Issue:
In August this year, the U.S. will once again face a debt ceiling crisis.
Congress may approve an increase in the ceiling in July.
The Treasury may subsequently rush to issue bonds, pulling liquidity out of the market.
(3) Erosion of Market Confidence:
Moody's has downgraded the U.S. credit rating.
Recently, there has been a phenomenon of simultaneous declines in stocks, currencies, and bonds.
The 'American Exception' theory is being questioned, and funds are starting to flow out.
Key Indicators to Watch
Bond Credit Spreads: Reflect market risk appetite.
Corporate Debt Default Rates: Warn of economic health.
Federal Reserve Policy: Whether it will intervene again to stabilize the market.
Summary:
The U.S. does face debt risks, but the issue lies not in the scale of maturing U.S. debt, but in the triple pressures of the corporate debt crisis, debt ceiling, and erosion of market confidence.
It is advisable for retail investors to closely monitor trends in the bond market, especially changes in credit spreads, as this is the real risk warning signal. The Federal Reserve is likely to intervene again, but market volatility is difficult to avoid.
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